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Asian ETFs Record Losses as Negative Sentiment Prevails

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Consumer prices rise in Taiwan, Asian ETFs down

Inflation levels in Taiwan rose by 0.9% on an annual basis in June—almost meeting expectations and versus a rise of 1.2% in the previous month. On a monthly basis, consumer prices rose by 0.34% in June—compared to a 0.37% fall in the previous month. On the other hand, wholesale prices in Taiwan fell by 2.7% on an annual basis in June—compared to a 2.7% decline in May. The iShares MSCI Taiwan ETF (EWT) and the iShares MSCI All Country Asia ex Japan ETF (AAXJ) were trading higher by 1.9% and 1.3% on July 5 at 3 PM EST.

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Philippines’ inflation rate rises

Among other Asian economies, the inflation rate in the Philippines came in at 1.9% for June on an annual basis—meeting expectations and above 1.6% growth in May. It was the highest release since December 2015. On a monthly basis, consumer prices in the Philippines rose 0.4% in June—above the 0.3% rise in the previous month. Core inflation also rose by 1.9% on an annual basis in June. The iShares MSCI Philippines ETF (EPHE) fell by 1.7% on July 5 at 3 PM EST.

Services PMI: China expands, Japan contracts

The services PMI (purchasing managers’ index) for China, published by Caixin, rose to 52.7 in June—compared to 51.2 in May and estimated forecasts of 52.3. It was the highest release since July 2015. A rise in new businesses drove the sentiment. In contrast, the Japanese services PMI, published by Nikkei, fell into the contraction zone. It released at 49.4 in June—compared to 50.4 in May. Japan’s services PMI also contracted in April. The iShares MSCI Japan ETF (EWJ) and the iShares China Large-Cap ETF (FXI) were trading lower by 0.02% and 2.2% on July 5 at 3 PM EST.

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